Stocks trading conditions
Order types and Order handling
Certain exchanges do not support Market orders. If a client places a market order in these markets, Saxo Bank will automatically convert the order to an aggressive Limit order within a certain percentage limit “in the money”.
The Percentage Limit varies between 1% and 4% depending on the exchange and the type of instrument. Please note that it is a client’s responsibility to check if the order is filled in the market after order entry.
If you experience or suspect any errors with your order, you should contact Saxo Bank immediately.
In addition, some of our execution brokers may choose to convert Market orders on certain exchanges into aggressive limit orders 3% “in the money”. This is due to their internal compliance and is intended to protect clients from unintentionally moving the market.
Saxo Bank will not be responsible for missing fills due to this.
Saxo Bank supports the placement of market orders while the market is closed. As the market may open at a very different price from where it closed, this could lead to shares being bought for more cash than is available in your account.
To minimize this risk, the system will calculate an additional cash buffer that must be available in order to place market orders to buy shares. Should the order placement be rejected a limit order may be attempted instead as the limit price will provide a maximum purchase price.
In case an order regarding a security is split, and filled partially over a period of more than one day, the total trading costs may increase. The reason for such increase is that the minimum fee may be charged more than one time based on the number of days necessary for the total execution of the order.
In general, Saxo Bank consolidates liquidity from a number of sources in addition to the primary exchange to improve the execution price for our clients. However, when there is a delay in the opening of a listing on the primary exchange, orders sent prior to the opening uncross will only participate on the primary exchange until trading commences. Other sources of liquidity (secondary venues, dark pools, MTFs etc.) are utilized post primary market open.
Please note, you may see streaming prices inside the trading platform before the primary exchange is open depending on your data subscription. However, market orders, stop orders or aggressive limit orders submitted prior to the open, will not be filled until the opening print from the primary exchange.
Dividend payments from stock positions will be credited to the clients account with any applicable standard withholding taxes deducted. Saxo Bank cannot currently support or offer preferential withholding tax rates that may be available due to residency or legal status.
Exchange and market specific conditions
When trading Chinese A-shares listed on the Shanghai and Shenzhen stock exchanges via the Hong Kong Stock Connect the following fees apply;
|Stamp Duty (charged by SAT, only for seller)||0.10%|
|Handling Fee (charged by SSE/SZSE)||0.00487%|
|Securities Fee (charged by CSRC)||0.002%|
|Transfer Fee (charged by ChinaClear / HKSCC)||0.004%|
|Portfolio fee, based on value slab (Charged by CCASS)||0.008% to 0.003%|
Please note that the following trading conditions for the North Bound Stock Connect (Hong Kong - Shanghai/Shenzhen) apply:
|Trading Currency||CNH (RMB)|
|Order Types||Limit orders only, throughout the day (day order)|
|Order Price Limits)||Typically ± 10% Last Close Price|
|Max order size||1 Million Shares|
|Lot size||Buy (100) Sell (1)|
|Tick Size||CNH 0.01|
|No amendment of orders||Orders must be cancelled and re-entered|
|Day Trading||Not permitted – Anything bought on T can only be sold on or after T +1|
|Sell only||Some symbols are categorized as sell only on certain dates by exchange|
|Daily Quota||Click here for more information|
Please note that Northbound Trading is closed the day before a Public Holiday in Hong Kong.
Click here to view the monthly HKEX calendar or access a complete overview of public holidays and closed trading days here.
For more information and details please visit the dedicated HKEx Stock Connect website.
Taxation by market
For Hong Kong stocks, Stamp Duty and other charges apply: 0.108%. Note: Automated trading from 09:30-16:30 with a break between 12:00 - 13:30.
Stocks have an ITP (Irish Takeover Panel) levy charge of 1.25 Euros for stock purchases and sales, where the trade value exceeds 12,500 Euros. Ireland Stamp Duty 1.0% of Transaction Value for stock purchases only.
From 1 March 2013 the Italian Financial Transaction Tax (FTT) of 0.10% will go live on all purchases of Italian shares and Equity linked securities (i.e. depositary receipts) in listed companies that have a registered office in Italy. Please find here the Ministerial Decree as issued by the Italian Minister of Economy and Finance.
The Johannesburg Stock Exchange applies a Securities Transfer Tax (STT) of 0.25% when opening a stock position (on stock buy trades) - this tax is not applicable to Single Stock CFD trades.
For UK stocks a Panel for Takeovers and Mergers (PTM) Levy and Stamp Duty may be applicable. Stamp Duty is applied on all buy transactions at a rate of 0.5% of the transaction value. A PTM Levy of GBP 1 is applied to buy and sell transactions where the Gross Value of the trade exceeds GBP 10,000. Please note that for Irish registered stocks, Stamp Duty is 1% of the transaction value.
Corporate action handling
Additional Stocks are allocated on the Ex-date.
Cash payment is allocated on Ex-date for value Pay date.
Cash dividends are booked on the Pay date based on the holdings as one day prior to the Ex-date. Dividend payments from Stock positions will be credited to the clients account with any applicable withholding taxes deducted.
The day before a Corporate Action event is scheduled to take effect (the Ex-date), open orders are deleted for certain event types. The following details the rules of behaviour:
|Event Type||Never delete orders||Always delete orders||Rule defined below|
|Reversed stock split||x|
For dividends and rights issues, all open orders for the given instrument will be deleted if the change in the market price is calculated to be over 20% due to the Corporate Action event.
The default payment form is cash. However, clients can elect to receive Stocks. The cash entitlements are booked at pay date based on Ex-Date holdings. The Stock entitlement will be allocated once the reinvestment rate is confirmed for value Pay Date.
For dividend option events with tradable coupons these will be allocated at ex-date. The default payment is stocks. Clients can however elect to receive cash. For dividend options clients will be able to manually insert standing instructions at the individual security level.
For exchange offers, clients holding a position in their portfolio will have the possibility to elect prior to the deadline.
A fractional stock is less than one full stock, and can arise as a result of a Corporate Action entitlement calculation. For the following Corporate Actions, Saxo Bank pays cash compensation for fractions whenever fraction compensation is applicable:
- Stock splits
- Reverse stock splits
- Optional dividends on stock positions
Holdings in the liquidated company will be removed. Liquidation proceeds, if any, will be allocated.
For mandatory Mergers there are different outcomes:
- Cash (distributed on Pay-Date)
- Stocks (distributed on Ex-Date)
- Mix of Cash & Stocks (distributed on Ex-date)
For mergers with elections, clients have the possibility to elect prior to the deadline.
Sometimes a Corporate Action involves an instrument that is not tradable online with Saxo Bank. Under those circumstances, the procedures are as follows: Positions in new instruments that are not tradable online, assigned as a result of a Corporate Action, are booked to the clients account. The instrument will be added to the client account for reporting purposes.
Clients holding the stock as of Ex-date will be given the possibility to subscribe for new shares. The offer to purchase new shares is not transferable.
Clients holding Stock positions will receive rights and can choose to sell the rights or subscribe to new Stocks. If Saxo Bank has not received a response from clients by the reply deadline date stipulated by Saxo Bank, the Bank will if possible, sell the rights on behalf of our clients before they expire. If the rights are non-tradable, they will lapse and become worthless. The proceeds from the sale will be distributed to our clients, less standard commission for the account. The reason the Bank carries out this action is to prevent rights from being worthless when they expire. For rights issues were a temporary line is paid as a result of the subscription, the temporary line will be moved into the ordinary line via a Pari Passu event.
Australian Listed Events
For certain event types including but not limited to Non Renounceable Rights Distributions, Subscription Offers, Entitlement Offers, Rapid Offers, Retail Offers, Australian Listed Companies have the right to reduce entitlements to zero in certain circumstances and Saxo Bank will therefore only be booking entitlements to clients on the Payment Date.
Cash payment is allocated on Ex-date for value Pay date.
Special and infrequent Corporate Actions that do not come under the descriptions above may occur. Saxo Bank will handle such Corporate Actions in the best interest of the client to the extent that time and operational procedures will allow.
Additional Stocks are allocated on the Ex-date for value on the Pay Date.
New Stock positions are allocated on the Ex-date.
Clients holding Stocks in their portfolio will have the possibility to tender.
Clients holding warrants will have the possibility to exercise their warrant prior to the deadline. Warrants not sold or exercised will lapse worthless.